South Development Fund gets only 0.31 percent of investment budgets

The Algerian government has allocated 0.31 percent of its investment budget to the southern area since the end of the 1990’s. It has been distributed on many development processes including sectorial equipment, weather changes program and the equipment new program.

Authorities also allocated 6.9 billion DZ to reduce power bill in the south as the Development Fund in the South is in charge of paying 50 percent of families and farmers’ power invoice and 10 percent for economic activities out of agriculture.

As part of a general evaluation of the Development Fund in the South program in 2014, authorities allocated 153 million DZ. A total of 149 million DZ still remains in the Treasury as 1.99 percent only of the budget were consumed.

Former CEO of Algeria’s energy group Sonatrach Abdelmadjid Attar says there is a need for ideas and concrete programs as part of a national strategy.

He added that huge sums have been spent for decades and infrastructures were built. Yet, Algeria is still dependent on hydrocarbons economy.

“I was shocked after seeing the situation of In Salah city. It has no decent airport although it is the source of a very giant natural gas field,” he said.

“Roads are deteriorated and most of buildings are about to collapse,” he added.

According to Mohamed Daoui, a deputy in the province of Ouargula (south of Algeria), the Development Fund did not reach its goals although billions of dinars were allocated.

He believes that the idea of creating such a fund was good but concretization was hindered and goals were not met.

He holds the administration responsible for the delay in the development process.

“Most of employees in the southern administrations have small experiences,” he said.

 Mohamed Baba Ali, a deputy in the province of Tamenrasset (south of Algeria) said the Fund was not successful because there was no clear management strategy.

He called for opening an investigation into the money allocated to the fund since former President Liamine Zeroual was in power.

“The Fund was supposed to fund infrastructures but it did not happen,” he told Echorouk on the phone.

He added that Algerian President Abdelaziz Bouteflika allocated budgets to different projects in the south including drinking water and universities as part of a five-year-plan.

He called on Parliament to investigate into those budgets and create a clear management strategy.